When Washington Flexes, Panama Folds: The CK Hutchison Shakedown

Panama's Supreme Court just canceled CK Hutchison Holdings' port concession contracts, declaring them unconstitutional and seizing back two strategic ports. Make no mistake: this isn't about legal niceties. It's a textbook case of American muscle erasing what used to be Panama's free business environment.

A Hong Kong government spokesperson slammed any foreign power using coercion or pressure to bulldoze Hong Kong companies' legitimate business rights abroad.

But the real story lies in the sequence of events. Watch how quickly things unravel when Washington decides it wants something.

A Three-Decade Partnership Suddenly "Unconstitutional"

CK Hutchison had been running port facilities at both ends of the Panama Canal since the 1990s. The contract got renewed in 2021. Leading up to that renewal, Panama's own Audit Office confirmed in its 2020 report that Panama Ports Company—CK Hutchison's local subsidiary—"substantially complied with the concession contract terms." Panama's Maritime Authority echoed that assessment in 2021, stating the company "fully fulfilled the responsibilities of the concession contract."

Fast forward four years. Trump returns to the White House in January 2025, and everything flips. In his inaugural address, Trump signals what's coming: he declares the Panama Canal vital to US interests and vows to "take it back".

Days after Trump's comments, Panama's Audit Office announces a sweeping investigation into CK Hutchison's port operations. The stated goal: determine whether the company honored its concession contract, fully reported revenues and expenditures, and whether corruption tainted the renewal process.

Rubio's Visit Sets the Dominoes Falling

The Trump administration keeps turning the screws. On February 2, 2025, Secretary of State Marco Rubio flies to Panama, pressuring the country to distance itself from China. President José Raúl Mulino caves immediately: he announces Panama's withdrawal from China's Belt and Road Initiative and pledges to strengthen cooperation with the United States to boost American investment in the region.

Two days after Rubio's visit—just 48 hours—two Panamanian lawyers file suit in local courts. They allege Panama Ports Company "violated 10 constitutional provisions" and demand cancellation of CK Hutchison's operating rights at two local ports. The timing isn't subtle.

In July, after months of "study," Panama's Comptroller General formally files suit, asking the court to declare the 25-year port operating contract CK Hutchison signed in 2021 unconstitutional. The Comptroller goes further, criticizing CK Hutchison for insufficient loyalty to the Panamanian government and harming Panama's interests.

On January 12 of this year, Panama conducts joint military exercises with US forces. The declared goal: defending this Central American nation's strategic canal waterway. The message to anyone watching is crystal clear.

A Judicial Rubber Stamp on Raw Power

Finally, Panama's Supreme Court rules that CK Hutchison's port operating contract is unconstitutional. Anyone claiming this was normal judicial procedure isn't paying attention. The reality is Panama buckled under massive US pressure, ripping up a valid contract and forcibly seizing back the operating rights to Panama's ports.

Hong Kong companies have poured substantial investment into Panama and delivered significant long-term economic contributions, supporting local economic development. Panama Ports Company, CK Hutchison's subsidiary, has invested 1.7 billion balboas (approximately HK$13.2 billion) to date—far exceeding the 1.05 billion balboas required by the original contract and supplementary agreements. During its operations, Panama Ports Company contributed 670 million balboas to Panama, dwarfing the contributions of other port operators.

According to Panama's own Comptroller General's evaluation, Panama Ports Company actually contributed over 5.9 billion balboas to the local economy through port added value, indirect benefits, and direct payments to Panama. Those numbers tell the story Washington doesn't want told.

Billions Invested, Contract Honored—Then Torn Up

Hong Kong enterprises consistently invested and operated according to the contract, making important contributions to Panama's economy. Yet Panama, under US pressure, arbitrarily tears up the contract and unilaterally revokes the port operating rights. The absurdity is breathtaking.

This incident carries several layers of implications worth examining closely.

The Panamanian government has become a complete puppet of the United States, arbitrarily confiscating foreign enterprises' assets. Hong Kong and Chinese Mainland enterprises will hesitate to further invest in the region.

Hong Kong's business leaders facing Washington's muscle have one clear path forward: align firmly with Beijing and push back hard. It's the only way to safeguard what's theirs—dignity and capital alike. And you can bet the nation will keep backing Hong Kong companies as they fight to reclaim their rightful business interests.

When US Hegemony Rewrites the Rules

Look at what US unilateral hegemony actually delivers: Washington slaps tariffs on whoever it wants, threatens military action, and tramples the very international rules it once lectured the world about. Under American pressure, investment climates in targeted regions turn into pure jungle. Legal protections evaporate the moment Washington wants them gone.

Stop pretending business operates in some politics-free zone. The truth is: capital has a passport—always has, always will. For businesspeople to survive in this landscape, backing your nation's position isn't optional. It's the baseline for keeping what you've built.

Lo Wing-hung

Bastille Commentary

** The blog article is the sole responsibility of the author and does not represent the position of our company. **

To understand the world, watch what Western politicians do—never mind what they bluff.

The Jimmy Lai verdict has landed in the court of Hong Kong, the Alliance case is rolling forward, and right on cue, Western politicians start throwing their weight around. The European Parliament fires off statements. American lawmakers grandstand about judicial independence. But two recent incidents expose just how hollow that moral posturing really is.

Ten Bullets, One Phone

Minnesota just gave America another grim lesson in how it really treats protesters. On January 24, federal agents hunting undocumented immigrants in Minneapolis pinned male nurse Alex Pretti to the ground and shot him ten times from behind. His weapon? A smartphone. The entire execution played out on camera for everyone to see.

Officers had already disarmed Pretti before they killed him. That didn't stop Homeland Security Secretary Kristi Noem from declaring—without a shred of evidence—that Pretti had committed "domestic terrorism". Border Patrol commander John Bovino piled on, claiming Pretti intended to "massacre" law enforcement officers, justifying the kill shot.

American public opinion erupted. The New York Times published a blistering editorial accusing Trump administration officials of outright lying and demanding Justice Department intervention. The Times pointed out something even more disturbing: this wasn't an isolated incident.

The Pattern Repeats

Earlier in January, another Minneapolis resident—Renée Good—was shot dead by a federal agent. Good's same-sex partner was filming federal officers arresting undocumented residents when agents interfered. As Good attempted to drive away, an ICE agent fired three shots, killing her. The Trump administration demonized Good as well, and actively obstructed the state government's investigation.

Remember Nancy Pelosi calling Hong Kong's Black Riots a "beautiful sight to behold"? Hong Kong police never killed a single protester who showed no intention of resisting. Compared to Hong Kong's extreme restraint, America operates in a completely different universe. Back in 2021, a Capitol security officer shot and killed a female protester on camera during the January 6 riot.

America enforces harsh national security laws with brutal methods—what standing does it have to lecture Hong Kong? Why doesn't the European Parliament dare condemn America's violent tactics?

Allies Abandoned in Syria

Syrian government forces just seized the country's largest oil field—the Omar field—and surrounding gas facilities in Deir ez-Zor province. The operation delivered a crushing blow to the Kurdish-led Syrian Democratic Forces (SDF), America's former battlefield partners. While Syrian forces celebrated victory, horrific footage emerged online showing Kurdish female fighters massacred.

The 1949 Geneva Convention explicitly prohibits torture, retaliation, or intimidation of prisoners of war. Syrian government forces' actions blatantly violate international law. Yet Trump stays silent on the slaughter of America's Kurdish allies.

The Kurds number 30 million, spread across four countries, and have pursued independence for decades. The SDF once controlled 25% of Syrian territory in the north and east—including oil fields that form the country's economic backbone. Washington backed the SDF to fight ISIS while opposing Assad's regime. The SDF did America's dirty work.

Friends and Enemies

Syria's current president, Ahmed al-Sharaa, was once on America's wanted list. But al-Sharaa is politically astute. After taking power in January 2025, he moved aggressively to improve relations with Washington, even secretly negotiating with the US and Israel to cede parts of the Golan Heights. That won Trump over. The administration now welcomes this former designated terrorist to the White House.

Russia, meanwhile, suffered a heavy blow in the Syrian reshuffling. Moscow had strongly backed the Assad regime, using Syria as a crucial Middle East base. Russian troops were stationed throughout Deir ez-Zor province, but after the SDF's defeat, Russian forces had to hastily withdraw from the region.

The Syrian massacre exposes this world's true operating principles: naked interests and raw power, nothing more. Al-Sharaa took power through the barrel of a gun, without any democratic election. He follows extreme Islamic teachings that fundamentally contradict America's professed principles of democracy and freedom. But operating on the logic that the enemy of my enemy is my friend, Washington now allies with President al-Sharaa.

The West has completely lost any moral high ground. Stop commenting on Hong Kong's affairs. If American politicians have time, they should focus on the male nurse shot dead at home and the massacred Kurds in Syria. Hong Kong is doing just fine—we don't need your concern.

Lo Wing-hung